Options Trading News

A trader is looking for St. Jude Medical to hold current levels in the next month.

About 2,100 STJ options have traded today, and while that isn't huge, it is twice the daily average for the last month. And almost all of the volume is in one print.

optionMONSTER systems detected the sale of 2,000 November 55 puts for the bid price of $0.60. The volume was about 4 times the previous open interest at that strike, so it is clearly a new position.

The put selling is a bet that STJ will hold above $55 in coming weeks. The trader is also willing to buy 200,000 shares if they fall below that strike by expiration in mid-November.

STG is up 0.51 percent to $56.83 this morning, which would be a new closing high for the stock, if barely. The medical-device maker, which reported earnings last week, has been trending higher from below $31 last November.

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

optionMONSTER® provides stock market insight, advanced options education, and actionable trade ideas to meet the needs of do-it-yourself investors. After spending decades in the trading pits of Chicago, Jon 'DRJ' and Pete Najarian founded the company in 2005 to help people better manage their own investment portfolios.